When your company’s Bitcoin stash is worth more than the company itself, something has gone sideways. Canaan Inc., the Nasdaq-listed mining hardware manufacturer, is betting that the market has gotten the math wrong, and it’s putting its crypto where its mouth is.
The company announced on August 4 that its board has authorized management to monetize a portion of its digital asset treasury to fund share repurchases. With roughly $130 million in digital assets sitting on its balance sheet as of August 3, Canaan believes its holdings alone exceed its market capitalization.
The numbers tell the story
Canaan’s digital asset war chest includes 1,915 BTC and 3,952 ETH as of late June and early July. At current prices, that portfolio clocks in at approximately $130 million.
The share repurchase program itself isn’t new. The board approved it back on December 12, 2025, authorizing up to $30 million for buybacks of American depositary shares and Class A ordinary shares. What’s new is the funding source: rather than dipping into cash reserves or taking on debt, Canaan plans to sell some of its crypto holdings to finance the purchases.
“This decision reflects our disciplined approach to capital allocation and our commitment to creating long-term shareholder value,” CEO Nangeng Zhang said.
Zhang also pointed to the company’s ongoing Bitcoin production as a source of confidence. Canaan isn’t just holding crypto it bought on the open market. It mines it. The company designs and manufactures ASIC chips, the specialized hardware that powers Bitcoin mining, and operates its own mining fleet alongside selling equipment to other miners.
Why a mining company is sitting on this much crypto
Canaan’s dual identity, part hardware manufacturer, part miner, explains how it accumulated such a significant treasury. The Singapore-based firm has been building out its self-mining operations over the past several years, retaining a portion of mined Bitcoin rather than immediately converting to fiat.
As of the company’s March 31 financials, the combined value of its digital assets and cash equivalents already exceeded what investors were willing to pay for the whole enterprise.
What this means for investors
The $30 million authorized for the repurchase program represents roughly 23% of the total digital asset treasury. That’s meaningful but not aggressive, leaving Canaan with substantial exposure to any future crypto upside while still addressing the valuation disconnect.
There are risks worth watching. Selling Bitcoin to fund buybacks only works if the stock remains undervalued relative to remaining assets. If Bitcoin’s price drops sharply after the sales, the company could find itself with fewer digital assets and a stock price that still hasn’t recovered.